There is growing recognition that Bangladesh's energy crisis may ease in the short term, but a lasting solution demands a decisive transition to renewable energy. As reported in the media, the government's target of generating 10,000 megawatts from renewables by 2030-requiring an estimated USD 9.36 billion investment across solar, wind, biomass, and biogas-signals important intent. Yet a critical question remains: should Bangladesh rely on importing technologies, or should it learn from countries like Denmark and China that built strong domestic capabilities? Merely importing solutions may address supply gaps but will limit long-term value creation and independence. Instead, Bangladesh should leverage this transition to cultivate local expertise, foster innovation, and develop a competitive energy technology industry. By doing so, the country can not only strengthen energy security but also create high-paying jobs for science and engineering graduates. A strategic shift towards indigenous capability building will transform the energy challenge into an opportunity for sustainable economic growth.
Bangladesh currently faces a formidable economic challenge, with annual energy import costs hovering around $12 billion. Driven by Middle East tensions and global price hikes, this figure is projected to surge by $4.8 billion-a staggering 40 per cent increase from 2025 levels. With fossil fuels like oil, gas, and coal powering between 46 and 95 per cent of the nation, the resulting strain on foreign exchange reserves has reached a critical tipping point.
To mitigate this crisis, the transition to renewable energy is no longer optional; it is a necessity. However, the true strategic dilemma lies in technological execution. Bangladesh stands at a crossroads: should it continue the historical trend of merely importing foreign technology and focusing on basic operation and maintenance? Or, should it adopt a more ambitious "assimilate and upgrade" model?
By choosing to license and further develop foreign technologies through local Research and Development (R&D), Bangladesh can achieve far more than just energy efficiency. This proactive approach would create a robust ecosystem of high-paying jobs for the nation's science and engineering graduates. Furthermore, developing such domestic capacity transforms Bangladesh from a consumer into a provider. It opens doors to exporting renewable innovations to other developing nations struggling with similar import dependencies. Ultimately, investing in indigenous technological mastery is the key to turning an energy crisis into a catalyst for long-term industrialization through innovation.
Here is a powerful lesson from Denmark. The country has emerged as a global leader in wind energy, with wind supplying over 50 per cent of its electricity consumption as of 2019. However, the deeper insight goes beyond clean power generation. Denmark's real success lies in building a robust wind energy industry through sustained investment in local research and development, continuously improving efficiency and innovation. This industry has become a vital economic pillar, supporting more than 30,000 jobs-around 2.5 per cent of private sector employment. Companies like Vestas exemplify this achievement, generating over €17 billion in 2024 by manufacturing, selling, installing, and servicing wind turbines. Denmark's experience shows that renewable energy is not just about solving energy shortages; it is also about creating high-value industries, fostering technological leadership, and generating skilled employment opportunities for long-term economic growth.
Following the 1973 oil crisis, Denmark faced a stark reality, relying on foreign oil for more than 90 per cent of its energy needs. Determined to reduce this vulnerability, the country embarked on a long-term transition away from fossil fuels. At the time, Denmark suffered from poor energy efficiency and lacked domestic wind energy firms. Instead of waiting and depending on imports, it chose to build a local industry by investing in research, engineering, and efficiency improvements. Over time, this strategy transformed Denmark into a leader in wind energy innovation. Advances in turbine size, materials, and offshore deployment significantly boosted performance, with modern turbines now achieving 44-48 per cent efficiency. These gains enabled higher energy yields and improved reliability. More importantly, Denmark cultivated a globally competitive ecosystem spanning technology innovation, manufacturing, and engineering-demonstrating how energy challenges can be turned into opportunities for industrial development and technological leadership.
A related lesson can be drawn from China. From a modest and experimental beginning in the mid-1980s, China's wind energy sector has expanded into the world's largest market, surpassing 400 GW of installed capacity by 2024. In its early stages, Denmark played an important role as a "teacher," sharing knowledge and technical expertise. However, unlike many developing countries, China did not remain dependent on importing wind turbines and expert services from Denmark. Instead, it focused on absorbing advanced technologies and learning how to improve them.
As reported by the Copenhagen Post, Chinese engineers collaborated with Danish experts in the mid-2000s to understand optimal turbine placement, wind measurement techniques, and technical design requirements. Yet China moved far beyond learning. Through deliberate policies-such as technology transfer agreements, local content requirements reaching 70 per cent by 2005, and strong state support for intensifying competition among private firms and collaboration with R&D facilities for performance improvement-Chinese firms rapidly built domestic capabilities. They transitioned from assembling licensed designs to investing in proprietary research and development, particularly in large-scale, high-altitude, and offshore turbines.
China's experience shows that true success lies not in import dependence, but in mastering, adapting, and advancing technology to build globally competitive industries.
The critical question for Bangladesh is how to build a global edge in renewable energy-spanning technology advancement, product innovation, manufacturing, system design, and deployment. As large-scale investments are planned, the country must avoid relying on subsidies to import foreign technologies. Instead, the priority should be developing strong technology assimilation capacity. This can begin with establishing renewable energy R&D laboratories in leading universities and fostering competition among private firms to design, manufacture, and install advanced systems such as wind turbines.
To accelerate progress, Bangladesh should adopt policies that encourage technology transfer while enforcing local content requirements to gradually build domestic manufacturing capabilities. Since renewable energy components offer continuous opportunities for improvement, targeted incentives should reward performance gains achieved through research and development. By linking investment and incentives with learning and innovation, Bangladesh can transform its renewable energy push into a platform for industrial growth, technological capability building, and high-value job creation.
M. Rokonuzzaman, Ph.D, Academic and Researcher: Technology, Innovation and Policy. zaman.rokon.bd@gmail.com
© 2026 - All Rights with The Financial Express
